TMI Blog2016 (9) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... , a society can be registered which has as its objects of promotion of the economic interests or general welfare of its members in accordance with the Co-operative Principles or a society established with the object to facilitate the operations of such society by the society registered under the Act with limited or unlimited liability. Thus if a society is interested in extending certain credit facilities on the basis of Co-operative Principles, such a credit society is liable to be registered under the provisions of the 1983 Act as well as its predecessor 1961 Act. As is now made out such societies essentially render certain services or facilities for purposes of the benefit and promotion of the welfare of its members. In other words the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-section (4) of Section 80P therefore, in its application is confined in relation to Co-operative Banks only. In the instant case the Assessee being, a Co-operative Credit Society which in turn is providing for certain credit facilities to its members alone but not to the general public at large and which also does not receive monies by way of deposit from the general public, it does not answer the description of a Co-operative Bank. Consequently, the main provision contained under sub-section (i) of Section 80P gets attracted and consequently the Assessee is entitled to seek the deduction which has been provided for under Section 80P. - Decided in favour of assessee. - Tax Case Appeal Nos. 655 to 658 of 2016 - - - Dated:- 6-9-2016 - N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to a notice served on it by the Assessing Officer under Section 148 of the Act, the Assessee has made a claim that its income is not liable to suffer any assessment it being a Co-operative Credit Society, but not a Co-operative Bank. 3. Section 80P of the Act deals with all aspects relating to deduction in respect of income of Co-operative Societies. Sub-section (1) thereof clearly spelt out that in case of an Assessee being a Co-operative Society, the gross total income of it includes any income referred to under sub-section (2), there shall be deduction in accordance with and subject to the provisions of the said Section, the sums specified in sub-section (2) in computing the total income of the Assessee. The sums referred to in sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for the registration of Co-operative Societies. Under Section 4 of the 1983 Act, a society can be registered which has as its objects of promotion of the economic interests or general welfare of its members in accordance with the Co-operative Principles or a society established with the object to facilitate the operations of such society by the society registered under the Act with limited or unlimited liability. Thus if a society is interested in extending certain credit facilities on the basis of Co-operative Principles, such a credit society is liable to be registered under the provisions of the 1983 Act as well as its predecessor 1961 Act. As is now made out such societies essentially render certain services or facilities for purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... banking activity requires to be regulated by the provisions of the 1949 Act. Section 80P(4) therefore is clearly attractive to such an institution. But not to credit society. Even while dealing with a Co-operative Bank sub-section (4) has taken care to ensure that the Primary Agricultural Credit Societies and Primary Co-operative Agricultural and Rural Development Banks are kept out of the purview of the said provision. Sub-section (4) of Section 80P therefore, in its application is confined in relation to Co-operative Banks only. In the instant case the Assessee being, a Co-operative Credit Society which in turn is providing for certain credit facilities to its members alone but not to the general public at large and which also does not r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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